Etc Urban Developments, a property company who focus on city living, is set to start work on the £2.5 million project that will see a warehouse on Guildhall street transformed into new homes.

The warehouse was built in 1897 as a carriage and autocar factory by Preston carriage builder James Walmsley & Co. It was later converted into a yeast warehouse in the 1920s.

The development will feature 20 apartments with a mix of two-bedroom, one-bedroom and studio accommodation. It will also see street level commercial space for retail use.

Neil Thornton, director of Etc Urban Developments, said: “With the backing of the Growing Places Fund and full support from Preston Council’s planning team, we can make a start on this exciting project restoring an historic and important commercial building in Preston from the Victorian era back to full use in the 21st century.

“Preston city centre needs the kind of heritage-led residential development that has helped to transform the centres of other Northern cities such as Manchester, Liverpool and Sheffield.

“A city living culture brings people back into the centre to live, work and play has helped to revitalise the day and night-time economies of these cities.

“The intention is for the Guildhall Street warehouse conversion project to act as a catalyst for further regeneration and residential projects, bringing increased vitality to Preston’s city centre.

“We want to be on site as soon as possible and we look forward to working with all our partners to make this first high quality project a big success.”

Etc Urban Developments will aim to retain as many of the original features of the building as possible. The apartments will go on sale later in 2017.